That’s the message from this morning’s stunning report from the Labor Department. It showed:

The economy created 257,000 jobs last month. That handily beat the average forecast of 228,000.

December’s reading was revised dramatically higher — to 329,000 from 252,000. Ditto for November, which went to 423,000 from 353,000. That means the last three months were the best stretch for job growth in 17 years!

As you might expect, the oil and gas drilling business is starting to see layoffs — with 1,900 jobs lost. But the retail industry added 46,000 jobs, while hiring in construction (+39,000), health care (+38,000), and manufacturing (+22,000) also came in strong.

Yes, the unemployment rate rose to 5.7 percent from 5.6 percent. But it did that because of the odd mathematics that go into the job report. Just over 700,000 Americans re-entered the workforce amid improving job-hunting prospects, meaning the rise is actually “good” news.

Last month, America’s workers saw the biggest rise in average hourly earnings since November 2008.

What about wages? Buckle up! Average hourly earnings soared 0.5 percent. That was the biggest rise in any month since November 2008! It pushed the year-over-year gain in wages to 2.2 percent, the most since last August.

Even the labor force participation rate ticked up to 62.9 percent from 62.7 percent. That indicator has lagged, and it still remains very low. But any improvement, like we saw last month, would be welcome.

Bottom line: We’ve seen several months in a row with strong job growth, and unemployment trending lower. Some people won’t take the numbers at face value. They’ve been saying for the better part of a year or two that every single government report is a complete lie, and I don’t expect that to change even if we have 20 more years of good data.

But whether you believe the numbers or not, they’re the figures that Federal Reserve policymakers follow. It’s hard to argue that zero percent interest rates make any sense whatsoever when official reports show our economy is churning out jobs at the fastest pace since the late 1990s!

“I’m combing through sectors that have been beaten down to ridiculously cheap levels to find bargains that could be the next to surge.”

So net/net, this report increases the chance of a “Bloody Wednesday” — where we come in on a Fed meeting day and policymakers catch the market napping by raising rates. That presents both risks and opportunities to investors, and it’s why I’ve spent a lot of time on this topic in my Safe Money Report. I encourage you to give it a try … before it’s too late!

In the meantime, what are your thoughts about the latest jobs figures? Are they as strong as they look? Why or why not? What are you seeing in your own backyard — is job and wage growth accelerating where you live? Or is it just more of the same “meh” environment we had in the first few years after the Great Recession?

What’s next for Greece? For stocks? For computer crimes? Those are some of the questions you stepped up to answer in the last 24 hours.

Reader Kevin weighed in on the European crisis, saying: “Greece shouldn’t have been admitted to the euro zone in the first place. They should return to the drachma, devalue the currency and watch the vacationers come back like crazy for the good deals.”

But Reader Steve H. thinks Greece isn’t the only country that’s going to be struggling with massive debt problems in the years ahead. His take:

“Greece is just the tip of the iceberg. Almost all countries have leveraged up in the past seven years and many do not stand a chance of ever repaying. The debt just keeps rolling over. Everyone knows the elephant is in the room. Today I went to 100 percent cash, the first time in my 50 years of investing.”

Speaking of going to cash and/or getting prepared for stock market trouble, Reader Billy weighed in with the following outlook:

“There’s nothing new with the stock ramp up of the last few days. Just short squeeze covering and nothing more based on Greek and other news being viewed as ‘favorable.’

“The long-term trend is DOWN for all the reasons we have discussed. That is, we’re leading a steady march towards deflation — and the next shoe to fall will by all the high yield junk subsidizing the energy markets.”

Finally, Reader Jim talked about the problems with data security in an interconnected, networked world. His view: “The only people not hacked are those who don’t know they have been hacked. What did we think would happen when we invented a machine that allows every miscreant on the planet to hook up to it? We are going to need two computers, one connected, one not. Buy Apple (AAPL, Weiss Ratings: A+)!”

Thanks for your thoughts! I agree that Greece should’ve been kicked out of the euro zone a long time ago, or never joined it in the first place. What I’m trying to figure out is whether it will finally be given the boot, and if so, how the euro will react.

I can make a case that after an initial shock move lower, the euro might actually rise. That’s because the currency would trade more as a “Deutschemark proxy” if the union’s weakest member were kicked out. Interesting times either way!

When it comes to stocks, I plan to just keep doing what I’m doing. Rather than make big, swinging, “all or nothing” market bets, I’m focusing on high-quality, highly rated stocks … in key sectors swept up in their own bull markets. And I’m combing through sectors that have been beaten down to ridiculously cheap levels (cough, energy, cough) to find bargains that could be the next to surge.

Another train accident, this time in Ohio, claimed two lives. Early reports suggest the driver may have driven past the crossing gates when they were down.

Meanwhile, in Taiwan, investigators said both engines experienced trouble less than a minute after takeoff. Authorities have confirmed 35 deaths, with 8 more passengers still missing and presumed dead.

The Ukraine conflict is heating up again, with hundreds of casualties mounting in that country’s east over the past few weeks. Leaders from Europe are flying to Moscow to try to get Vladimir Putin to ease off, while U.S. Secretary of State John Kerry is traveling to Kiev to discuss providing U.S. weapons to that country.

Mike Larson graduated from Boston University with a B.S. degree in Journalism and a B.A. degree in English in 1998, and went to work for Bankrate.com. There, he learned the mortgage and interest rates markets inside and out. Mike then joined Weiss Research in 2001. He is the editor of Safe Money Report. He is often quoted by the Washington Post, Reuters, Dow Jones Newswires, Orlando Sentinel, Palm Beach Post and Sun-Sentinel, and he has appeared on CNN, Bloomberg Television and CNBC.

{45 comments }

Chuck BurtonFriday, February 6, 2015 at 4:59 pm

I saw a chart a couple of weeks ago showing gov. data. Fewer workers at the end of 2014 than at the end of 2013. How can that mean employment is improving? How can Fed raise rates and put more people out of work? How about the holiday temps who got laid off in Jan.? Lets see how those figures pan out.

Scott SFriday, February 6, 2015 at 5:09 pm

I always wondered – do the employment numbers include temp workers? I assume they do, but…

Joe CarterFriday, February 6, 2015 at 5:18 pm

Do you really believe that BS about the job market and employment stats? How can employment stats be the best in 17 years? A labor official said yesterday lots of engineers would be unemployed stats if they did not go our to mow lawns a few hours a week. I’ve never seen so many people in Atlanta without jobs. Crimes are up. People are following the mailman robbing mail from mail boxes. 75 percent of those working are surviving from paycheck to paycheck. The middle class has declined from 31 to 21 percent. The Great recession is truly a serious depression. The Fed has done little correct in two decades. We need a true revolution in our country, and that is not good!

BarryFriday, February 6, 2015 at 5:28 pm

I say AGAIN the fed will not raise interest rates until the October meeting the 27th & Bloody Wednesday 28th . This is your Bloody Halloween 2015. The Year of the Whirlwind!!! Put All your money on it!! Mike I hate to see you fail…Remember October 28th 2015 That is your “Bloody Wednesday” !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Donald LinkFriday, February 6, 2015 at 5:30 pm

The real labor rate, just like the real inflation rate,are distorted by the government for their own purposes. Nobody believes them but everyone thinks it will all work out. With an $18T debt and the costs of servicing it, I sincerely doubt it.

WaldoFriday, February 6, 2015 at 5:45 pm

Obviously the turn around in the economy is due, 100%, to the last Congressional elections and the market’s anticipation that the new GOP Congress will do for the current economy more of what it did to the economy under the G. W. Bush administration.

Remember just how great things were in 2008, just before that Democrat moved into the Whitehouse!

Any so called advancements in the economy over the past 6 years reflect the legacy of the Reagan and Bush administrations, not the efforts made by those Democrats. All bad economic news is traceable directly to the Democrats “liberal” agenda while all positive news is a direct result of Repuglian efforts at “proper distribution” of our nations resources from the underserving to those, who by their very economic dominance, deserve more as a reward for political and class loyalty.

DaleFriday, February 6, 2015 at 5:56 pm

Mr Larsen<
You and Larry Edelson are saying opposing views of the future, yet you both work for Weiss, so what gives, just covering your behind so what ever happens, Weiss can claim to have foretold it?????????????????????????????????????????????????????????

GaryFriday, February 6, 2015 at 9:15 pm

ZSL moved quite a bit today & I am happy. I agree Mike & Larry have a different view of the future.

mikjallSaturday, February 7, 2015 at 3:59 am

I think that both Mike and Larry are excellent sources of information and analysis, but – as with anyone – you have to take account of their individual strengths and weaknesses. Likewise, you have to pay attention to the fact that the focus of their analyses is quite different. For instance, Larry is quite focused upon gold and precious metals, and also Asia, whereas Mike looks primarily at the US stock markets and the factors that he thinks are affecting them and does a lot of sector analysis (valuable). You can predict a near-to-middle term slump in gold, while supposing that the equity markets are about to rebound. There’s also the matter of timing, which both Larry and Mike are smart and honest enough to admit is always uncertain, and they could have different intuitions about timing while agreeing on essentials. No one should try to use advice from either Larry or Mike for short-term “trading”. And also, they’re giving it their best shots, I think, but it’s ADVICE, and it’s up to each reader (investor) what he or she makes of it. That’s called “due diligence”. As for their weak spots, both of them swallow US political propaganda whole, while urging us to see through much of the economic propaganda. A strange, and unhealthy, mixture. Larry, who spends a lot of his time in Asia, especially China, thinks that his experience tells him more than it does. He makes good points, and points out that much of what is published on Asian markets and economies is crap; but if you are into Asian investments, there’s lots of analysis available that isn’t crap and doesn’t necessarily support Larry’s view. Larry should also report much more regularly on what’s happening in commodities in general (base metals, agriculture, oil and gas, and so on). He concentrates much too much on precious metals, and doesn’t even explain his views on oil and gas (although he predicts seriously slumping oil prices). Mike used to produce brilliant quarterly reports on the US economy and markets, but he seems to have quit that recently. He’s prone to confusing his wishful thinking about US economic recovery with what’s actually happening. He complains about Fed policy and also about what the Obama administration does and the Democrats (fair enough, although there’s little actual difference between that and what the Republicans have done and will do again), but he seems to be unaware of – or uncaring about – the destruction caused by big finance and corporate lobbyism, and “the new normal” of “fraud as a business model”. What does he think drives Fed policy? Mike should get out of la-la land and pay attention to Janet Tavakoli, Yves Smith, Karl Denninger (he even ran a business!), Bill Black (he even sent over 1,000 crokked bankers to jail!) and people like that. Oh, and both these guys should quit war-mongering. On that, even Ron Paul could enlighten them.

mikjallSaturday, February 7, 2015 at 4:03 am

Oh, and I forgot to say that everyone should look at Jack Rasmus, too, if they want some good economic analysis.

jack holdsteinFriday, February 6, 2015 at 5:57 pm

Jobs report……Question the quality of new jobs reported and level income vs jobs lost and level of income. Does anyone report the net,net, of jobs gained vs jobs lost?

RUSS SMITHFriday, February 6, 2015 at 6:01 pm

Hi!, Patrons Of Money & Markets Et. Al.:

It’s so great to know that, based on some short term cycle jobs reports or anything else in fact for that matter, that right now beginning this year the decline of the US Middle (Muddle) Class has been arrested; the US $ is again as good as gold; and the overall world economy is now in revival, because a guy from Florida has an influenced, psychological, positive and speculative attitude today which might change tomorrow??!! What are the facts vs. the dreams of the FED. and government which spends every year far more than it produces? In fact explain to me just one item of consumption produced by the U S Government that we can purchase but they do produce inflation they use to spend their way don’t they? The psychological $ is up against the Euro yes but the $ is no way back to 140 pennies in buying power today like it use to be when a $ was redeemable in gold which gives us a US $ today under 3 cents regardless of any jobs reports or any other kinds of government/FED. sponsored reports we can think about in todays’ world. Contact the American Institute For Economic Research in Great Barrington Mass., (888) 528-1216, and have them send you a copy of their CHART BOOK for around $10. showing the collapse in the purchasing power of the US $ sense President Nixon closed the US Gold Window August 15, 1971. Maybe we can talk the $ back up to where it belongs, in order to bring about not only jobs that help pay on the National Debt but also contribute to a true, blue revival of the US Middle Class away from no longer being the US Muddle Class? Perhaps Mr. Larson can revive the purchasing power of OUR $ or perhaps the FED. can but none of them will ever on their own revive the downtrodden American Muddle Class back into position to become the American Middle class of 5 – 6 decades ago when the US $ represented 1/35th of a troy oz. of gold in an allow 9/10ths fine will they? This ongoing, relentless abandonment of OUR US Constitution’s article 1; Section 10 mandating gold and silver coins ONLY was placed onto the monetary death row many decades ago and nobody has sense did a thing to change that situation except talk which is as they cheap. Dear reader do you see any gold and silver coins ONLY in your pockets? Neither do I or anyone else and we don’t even have any kind of commitment to an accounting of whether there is any honest gold holdings under the helm of the US in Fort Knox, Kentucky. How many farmers would put up with that surmise when they want to know how many bales of hay they have in their barn and or how many cows they have but, when it comes to we the people gaining knowledge of how much non obligated to 3rd party gold OUR Nation has stored at Fort Knox, Kentucky, mums the word? Couldn’t we add to the jobs report a few more employees assigned the job of counting OUR gold or that’s too much to ask too as usual?

I’m a middle class person with what most would consider a good job. I just sold the last of my gold and silver coins to pay my outrageously high f—–g overdue taxes. I’m with Richard Maybury. “Our current government is Santa Claus with a gun.” Since when does having a job in this country make you secure? Jim

joanFriday, February 6, 2015 at 6:17 pm

I am still in the camp that doesn”t believe anything the government puts out/ Their lies get bigger an bigger.. Their numbers are so manipulated even the FR is totally confused.

I heard Susan Rice today , our President’s senior national security adviser, and she lives on another planet from most of the rest of us. She is a proven liar anyway so no one pays any attention to what drivel she puts out. Just my view

Abolish the IRS.

Fred1Friday, February 6, 2015 at 7:12 pm

As someone famous once said, “…there you go again….!” And here I had been thinking all along that I could keep my doctor.

RUSS SMITHFriday, February 6, 2015 at 6:23 pm

Hi!, Patrons Of Money & Markets Et. Al.:

Mr. Larson is not the only US born baby that made it to a college or university and far from it. In class at my college we learned for example: There are lies; damned lies but worst of all government statistics!!! Anyone else learn that too and do you really require a college or university degree to get the gist? Do we really want to continue with the lies, damned lies and government statistics or see the Constitutionally promised gold and silver (specie) coins only found in Article 1; Section 10 in OUR pockets?

Thank you Mike. In your morning column today, you said that you were wrong about interest rates this year. That said a lot about your character. We ALL make mistakes and you admitted yours – no one bats 1,000. Thanks again for just stating it and not making any excuses , , , you know, it just happens from time to time

HowardSaturday, February 7, 2015 at 6:40 pm

Agreed

H. Craig BradleyFriday, February 6, 2015 at 7:31 pm

TETE- A- TETE

I find the current recovery theme of great interest; a curiosity, a phenomenon. Clearly, everyone really wants a recovery to come true. After all, we have been “hoping” for such a (economic) recovery for over 6 years. We already made our collective choices and committed our money. Everyone is desperate to believe and everyone want to be a “winner”. We CAN’T lose.

Question is: In what? We will gladly give the benefit of the doubt to growth and recovery. What is the alternative? Unpleasantness. Responsibility, Consequences. Accountability ( God Forbid ), and Truth. We are inclined to change the yardstick rather than ourselves or admit we may be quite mistaken. We are “all-in”.

Most people don’t want to confront any kind of unpleasant reality and we are in a mindset to be very introspective and insular, and not just in our foreign policies either. We are terribly spoiled and dumb. Time to first critically look at ourselves. We can’t handle the truth. Until we change, things are unlikely to measurably improve for any length of time.

I like the refreshing perspective of Rich Santelli on MSNBC each weekday morning (Santelli’s Exchange) and the guests he occasionally invites to share their perspective and point-of-view. This morning a guest from the Hoover Institute shared this: The main component of rising wages in increases in productivity, which thus far have been lacking. Its the linchpin of sustainable wage growth.http://video.cnbc.com/gallery/?video=3000352621

So, until we actually see evidence of sustained increases in productivity, we are unlikely to realize sustained wage growth above the inflation rate ( also a debatable govt. number). Monthly figures may be positive at the moment, but the trend is far more important in the long run. So far, the data has been volatile from month to month and lacked consistency over any 12-month period in the past 6 years. We choose to overlook this fact.

News reports only follow monthly data and compare it to last year to determine if things have apparently improved. Thus, we all have a bias to see the positive and ignore the negative. We are thus full of ourselves. The result is often self-delusion and misconceptions. Until positive data shows greater consistency over longer periods than a month or two, we should remain skeptical. Following the crowd is a no-brainier and is not reassuring at all. For many, being wrong is better than being alone. It takes a rare brand of courage to do that in uncertain and tricky times.

Chuck BurtonFriday, February 6, 2015 at 9:02 pm

Re: Productivity. Productivity in most industries has been increasing dramatically. The problem is, it is mostly the result of machine labor of one sort or another, not human endeavor. The result has been higher profits in some industries, and higher wages for certain individuals, but lower human involvement at the production level. It doesn’t take a lot of training to push a button on or off, and to notice that all the widgets are coming off the line in good order and looking the same. And if someone in another country is willing to do it for a lower pay, guess where the jobs are going to go. That way the owners can pull in more bucks. If we own stocks in the company, WE are those owners, and WE are responsible for those policies.

Nakita TiyadeFriday, February 6, 2015 at 7:40 pm

Walking by faith in God and believe me I don’t understand why you ask me to get a new challenge illumination the truth and transformed the outpouring commission payment for nothing to get it done thanks

Tom ParkerFriday, February 6, 2015 at 8:42 pm

Michael, for your sake please let go of rising interest rates. Why would the Fed commit suicide. “Bloody Wednesday”? The Fed will raise interest rates “only” when they are “forced” to, Not 1 nano-second earlier. There is enormous “deflationary” energies in the world wide economy. The job report could be 500,000 new hi-paying jobs jobs for the month and unless that 10/30 year bond moves the Fed ain’t doing anything.

Chuck BurtonFriday, February 6, 2015 at 9:12 pm

And, aren’t higher interest rates on bonds a sign of lower quality and higher risk? Is that what we want for U.S. bonds? Keep ’em low as long as they sell! When rates HAVE to go up to sell, that will be a sign of the end times for this nation.

Tony GauciFriday, February 6, 2015 at 9:12 pm

Since the job market is dong so well, would an increase in interest rate be favourable to the market, sort of cooling things a bit ??

Dr. Donnie SmithFriday, February 6, 2015 at 9:27 pm

Mike the governments labor rate, just like the inflation rate, are distortions by the government for the purposes of maintaining the loyal democrats who have severe pain when forced to think.
Why do you bother passing on the numbers from the government…? Do you truly believe we readers are ignoramuses…?
Simply put, you do not add credibility to anything else you write about.
Why don’t you tell us why all this good news from the last 6 years has not been enough to arrest the rate of growth of the National Debt which has just past $18.1 trillion dollars…?
None of these new jobs cannot pay on the National Debt much less service it because they simply do not exist…!
Oh, by the way… I didn’t get to keep my doctor either…!

JimFriday, February 6, 2015 at 10:29 pm

What Doctor?

JimFriday, February 6, 2015 at 10:40 pm

We are suppose to have faith in the numbers given to us by the same outfit that gave us Obamacare, NSA spying on everybody, Homeland Security, low interest rates, no jobs for our young, failing public schools, the environmental law, and endless foreign wars? Fool me once! Jim

Chuck BurtonSaturday, February 7, 2015 at 1:42 pm

My old health ins. just threw in the towel. I had to search for something else.

Dr. Donnie SmithFriday, February 6, 2015 at 11:31 pm

11 States now have More People on Welfare than Employed…!
Last month, the Senate Budget Committee reports that in fiscal year 2012, between food stamps, housing support, child care, Medicaid and other benefits, the average U.S. Household below the poverty line received $168.00 a day in government support… And the was two years ago… The daily take has got to be many times greater today.
There’s really no problem with that much support… Or is there…?
Using the same governments numbers, the median household income in America is just over $50,000,which averages out to $137.13 a day!
To put it another way, being on welfare now pays the equivalent of $30.00 an hour for a 40-hour week, while the average job pays $20.00 an hour.
How can unemployment possibly be as low as 5.7% with government numbers like that…?
Who the hell in their right mind would be looking for a job…?
Oh, that’s right we allow a person to be president who has no social security card, no birth certificate, and no idea who Americans really are…
How stupid can we get…?

JimSaturday, February 7, 2015 at 12:48 am

The real problem isn’t Obama. The real problem is that a majority of U S citizens voted for him. TWICE!

HolygeezerSaturday, February 7, 2015 at 11:50 am

The really real problem is that people vote for either of the two parties owned by the 1% oligarchs. Both parties are simply puppets for the plutocrats and neither party gives one thought about the citizens of the country.

MikeSaturday, February 7, 2015 at 12:01 am

Have you thought of the impact to the Federal budget on the US Central Bank raising interest rates? What is the interest rate on $18 trillion dollars? Any change in the interest rates will throw the budget into the trash. They know what the impact will be, and will be reluctant to raise rates until January 2017.

REALITYBETRAYSUSSaturday, February 7, 2015 at 1:03 am

http://godfatherpolitics.com/8769/obama-hates-america-and-must-destroy-the-economy/
Please get your head removed from your rear, your ignorance and total incomprehension in terms of what is happening in our country is pathetic! Obama just allowed 5 million illegal aliens into our country and encouraged them to take jobs away from Americans! You do not think that is going to S _ _ w the rest of the Americans who are out of jobs and have no hope for recovery in what the gov. tells us will be a 25 yr depression? Hello? Who are the idiots who write this shit like your article anyway they can not be unemployed homeless or living on welfare,they need to get out more often and drive around some of America’s largest cities and see just how F_ _ _ _ _ _ up this country really is. Statistically the out of work numbers are above 25% in almost all states.Your statistics are shit! QUIT LYING TO THE AMERICAN PEOPLE WE KNOW BETTER! YOU MUST BE PART OF THAT “BORN WITH A GOLDEN SPOON IN THEIR MOUTHS 1%.” BUT THEY ALSO HAVE THEIR HEADS PERMANENTLY ENTRENCHED UP THEIR ASS!

REALITYBETRAYSUSSaturday, February 7, 2015 at 1:13 am

if you really do not think the USA gov and people as a nation are in trouble then go look at the basic numbers on our national balance sheet like why has our GNP gone down for the last 10yrs? Why has our foreign debt to countries like China exploded to way more than we can easily pay off in a short amount of time say 5yrs? Why has our total debt exploded to something like 200 trillion dollars counting liabilities that are owned outwardly and those not reported like all the social programs such as social security which must be paid.? Anyone that really knows and understands the magnitude of the problems facing America should scard S – – -less! Please quit trying to dumb down the American “sheeple” this is not helping, instead of a drugged stupor we need politicians who will schock us back into reality by dosing us with a 5 gallon bucket of ice cold water so we truyly understand the magnitude of our problems and where we stand…

PaulSaturday, February 7, 2015 at 4:03 am

Your looking at the wrong data. Pull up the U-6 report. You’ll get a totally different picture of the actual unemployment rate. It’s more like 12 percent.

zeeeeSaturday, February 7, 2015 at 9:08 am

Anyone who believes these phoney gov’t number is a bozo and not worth listening to. Lost any chance at credibility.

I do not believe these government numbers and am surprised you do. Oil cos. eliminating 25,000 jobs which hurts many other unrelated companies. GDP, unemployment, and inflation numbers are all not realistic as the gov. changes them to fit their politics.

Chuck BurtonSaturday, February 7, 2015 at 2:03 pm

Just read where the Minneapolis Fed president gave a poor performance rating to the FOMC, and said they ended QE3 too soon. QE4, anyone?

Chuck BurtonSaturday, February 7, 2015 at 2:06 pm

See Galegion’s link above and read down below that item.

Al McNalSaturday, February 7, 2015 at 4:15 pm

Central banks all over the world have been playing the game of currency devaluation for 60 years or more. So talk of relative value of currencies is rather meaningless. The US decided to compete with China when the Chinese worker was paid <1/10 of American workers does that make sense? Russ Smith and Craig Bradley nailed it above especially Craig's comment about giving the benefit of the doubt to growth and recovery because the alternative is "Unpleasantness. Responsibility, Consequences. Accountability ( God Forbid ), and Truth."

Let's assume central bankers actually look at all their various country data and analyze it. So,… Japan then has decided it is sinking into deflation and needs more debt. Europe has obviously decided it needs more debt since it is loaning to Greece, Portugal, Ireland, Spain, Italy plus their own banks are mired in debt to emerging markets. Their own figures show they are falling into deflation in 8 of the EU countries at latest count. The US although supposedly in a wonderful upswing cannot raise rates. The president wants to go much further in debt. Switzerland has decided they aren't playing the bailout game any longer. Paul Krugman feels we should drop money from helicopters. Ben Bernanke sure wasn't going to let the economy slow to a more stable state. I know a guy who works for the World Bank in Berkina Faso whose job it is to simply give away money, as much as possible, to any project that seems somewhat economically viable.

I read all the above comments and my take on these ideas was that all these people,
who are at least studying the situation, are skeptical to say the least and bitter to assess more accurately economic leadership. What does that tell one?

I'm just kinda feeling if all these really intelligent political central banker economist types are scared to death to let the economy grow on its own then maybe there is a real chance of deflation and depression. Maybe the debt to GDP ratio is swaying me a little.

Chuck BurtonSaturday, February 7, 2015 at 7:45 pm

Like inflation, deflation, and maybe even depression, to some degree, is a natural part of economic cycles; especially when currency is based on nothing but faith. The central bankers, like all politicians, are afraid of what such unpleasantness means for them. They could lose their positions of power. They will do anything to hold it off. Holding it off means it will eventually happen anyway, and it will be worse than if they had let a mild form happen in the first place. It could even be devastating to millions of people.

DickSunday, February 8, 2015 at 9:01 pm

Mike Larson has now and has had for some time, zero credibility to comment from an investment standpoint using falsified govt. reports!!

Jim MMonday, February 9, 2015 at 10:38 am

The Fed extending bond maturities cannot be a good thing. Greece continues to be a cancer in the Eurozone waiting to metastasize. And the job growth, if the Fed reports can be believed, hide the fact that these jobs are temporary and low-paying.

chuckTuesday, February 10, 2015 at 12:12 am

I would say some one is playing with some numbers… Small growth is the word. Most of the jobs I’ve heard or seen is with temps and sesonal type… Not on going. That’s why I say someone has a lot of pull to make things simingly better than they really are.